Debits and Credits

Debits and Credits - Why Are They Important?

Every business transaction has two sides -- a buyer and a seller. The business sells a 

product or service to a customer or client. Most companies use a system of double-entry 

bookkeeping to keep track of their transactions. Double-entry bookkeeping requires a 

recording system using debits and credits. http://www.firststepfirst.co.in

Debits and credits are traditionally hard to understand because they're not very intuitive.

 The first and most important rule is that debits are always shown on the left of a T-

account and credits are always shown on the right. When you understand that, you've 

come a long way toward understanding debits and credits. The challenge becomes 

knowing when to debit an account and when to credit it.

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